quarterly results presentation - bankia...2017/01/23 · quarterly results presentation...
TRANSCRIPT
1
Quarterly results presentation3Q 2017
30 October 2017
2
Disclaimer This document was originally prepared in Spanish. The English version published here is for information purposes only. In the event of any discrepancy
between the English and the Spanish version, the Spanish version will prevail.
This document has been prepared by Bankia, S.A. (“Bankia”) and is presented exclusively for information purposes. It is not a prospectus and does not constitute
an offer or recommendation to invest.
This document does not constitute a commitment to subscribe, or an offer to finance, or an offer to sell, or a solicitation of offers to buy securities of Bankia, all
of which are subject to internal approval by Bankia.
Bankia does not guarantee the accuracy or completeness of the information contained in this document. The information contained herein has been obtained
from sources that Bankia considers reliable, but Bankia does not represent or warrant that the information is complete or accurate, in particular with respect to
data provided by third parties. This document may contain abridged or unaudited information and recipients are invited to consult the public documents and
information submitted by Bankia to the financial market supervisory authorities. All opinions and estimates are given as of the date stated in the document and
so may be subject to change. The value of any investment may fluctuate as a result of changes in the market. The information in this document is not intended
to predict future results and no guarantee is given in that respect.
This document includes, or may include, forward-looking information or statements. Such information or statements represent the opinion and expectations of
Bankia regarding the development of its business and revenue generation, but such development may be substantially affected in the future by certain risks,
uncertainties and other material factors that may cause actual business development and revenue generation to differ substantially from our expectations.
These factors include i) market conditions, macroeconomic factors, government and supervisory guidelines, ii) movements in national and international
securities markets, exchange rates and interest rates and changes in market and operational risk, iii) the pressure of competition, iv) technological changes, v)
legal and arbitration proceedings, and vi) changes in the financial situation or solvency of our customers, debtors and counterparties. Additional information
about the risks that could affect Bankia’s financial position, may be consulted in the Registration Document approved and registered in the Official Register of
the CNMV.
Distribution of this document in other jurisdictions may be prohibited, therefore recipients of this document or any persons who may eventually obtain a copy of
it are responsible for being aware of and complying with said restrictions.
This document does not reveal all the risks or other material factors relating to investments in the securities/ transactions of Bankia. Before entering into any
transaction, potential investors must ensure that they fully understand the terms of the securities/ transactions and the risks inherent in them. This document is
not a prospectus for the securities described in it. Potential investors should only subscribe for securities of Bankia on the basis of the information published in
the appropriate Bankia prospectus, not on the basis of the information contained in this document.
3
CONTENTS
9M 2017 HIGHLIGHTS1
3Q 2017 RESULTS2
ASSET QUALITY AND RISK MANAGEMENT3
4
CONCLUSIONS5
LIQUIDITY AND SOLVENCY
4
9M 2017 Highlights
QUARTERLY RESULTS PRESENTATION
Profitability
Asset quality
Capitalgeneration
Competitive positioning
Reduction in NPAs: €1,581mn Sep.17 vs Dec.16
CET1 FL ratio: 14.16%
Cost to income ratio: 48.0% 9M17
Attrib. profit: €739mn 9M17
NPL ratio: 8.8%
Total Capital ratio: 17.18%
Highest customers’ satisfaction levels
2.3x New mortgages
+19.6% Consumer finance
NEW MULTICHANNEL DISTRIBUTION MODEL BOOSTS BUSINESS AND REINFORCES OUR
CUSTOMERS’ SATISFACTION
... RETAINING OUR COMPETITIVE ADVANTAGES...
... ACCELERATING THE REDUCTIONIN NON-PRODUCTIVE ASSETS...
... AND GENERATING CAPITAL ORGANICALLY AND ON A RECURRENT BASIS
2
3
4
1
5
Commercial positioning | Multichannel transformation
We continue developing our multichannel transformation plan...
QUARTERLY RESULTS PRESENTATION
9M 2017 Highlights
Portfolio based model
+-
+
-Financial advisory
Mu
ltic
han
nel
Considering and analysingour customers’ needs
Simplicity Proximity Transparency
Customer focused Efficiency driven
Transformation based on our positioning... ...and aligned with the distribution model
Digital profile
Financial advisory needs
Operational needs
6
Commercial positioning | Remote manager “Connect with your expert”
... consolidating our customers’ remote management model…
QUARTERLY RESULTS PRESENTATION
104 300
DEC 15 DEC 16
+ 8.2% Number of customers (thousands)
473
JUN 17
9M 2017 Highlights
512
SEP 17
FOR FREENo additional cost
PERSONALISEDAlways the same manager
FUNCTIONALSale 100% remote
FLEXIBLE24x7
Overall satisfaction with managervs 89.6% overall satisfaction with Bankia
ProductivityConnect with your expert manager vs commercial manager
Business volume
€18,475mn Sep 17
+ 67% vs Dec.16
93.0%
+35.2%
7
Commercial positioning | Digital channels
... developing and revamping all the bank’s digital channels...
QUARTERLY RESULTS PRESENTATION
9M 2017 Highlights
+ Usability
Enhanced browsing
Streamlined processes
More “one click” options
Web Chat
Easy contact with managers
Online support
Wall: allows to complete processes started in other channels
“One click” consumer and card offering
Transfer of mutual funds and pension plans
Buy all products (except insurance and mortgages)
Commercial offering shaped by Business Intelligence
Simulators for mortgages, house appraisals, pensions, insurance...
Setting up of direct debit using photographic images
Biometric access
Card activation and deactivation
+ Contactability + Sale oriented + Service
July 2016November
2016June 2017 July 2017
New website for retail banking and bussinesses
New app Bankia Online New Wallet
Constantly reviewing and improving, adding new
functionalities
8
Commercial positioning | Digital sales
...which translates into a bigger number of digital customers and transactions...
QUARTERLY RESULTS PRESENTATION
9M 2017 Highlights
“ON” ACCOUNT
19.2
40.4
4Q 16 1Q 17
49.7
2Q 17
Quarterly new “On” Accounts (thousands) Since launching on Nov.16
59.8
3Q 17
DIGITAL SALES
10.4%
DEC 16
13.1%
SEP 17
Digital sales as a % of Bankia total sales
9
Commercial positioning | Customer satisfaction
... allowing for our customers’ satisfaction to reach maximum levels...
QUARTERLY RESULTS PRESENTATION
9M 2017 Highlights
CUSTOMER SATISFACTION INDEX NET PROMOTER SCORE – BRANCHES
Source: Bankia
Source: Bankia
NPS: index measures willingness of customers to recommend, calculated as a % promoters - % detractors. Promoter customers give a score of 9 or 10, while detractors give a score between 0 and 6, on scale from 0 to 10.
86.3 87.3
1H 16 2H 16
89.3
1H 17
89.6
3Q 17
NET PROMOTER SCORE – CONNECT WITH YOUR EXPERT
56.9%
DEC 16
59.0%
SEP 17
MYSTERY SHOPPING
6.01 6.036.29
6.747.04 7.05
5.555.88
6.61
7.287.64 7.71
2012 2013 2014 2015 2016 9M 17
SECTOR BANKIA
28.6%
DEC 16
38.4%
SEP 17
+0.66+0.60
+0.54
+0.12
-0.15-0.46
Source: STIGA Research on mystery shopping satisfaction
10
Commercial positioning | Commercial activity
... accelerating commercial dynamics
QUARTERLY RESULTS PRESENTATION
9M 2017 Highlights
NET NEW CUSTOMERS
POINT OF SALE STOCK CARDS TURNOVER POINT OF SALE TURNOVER
+ 141,000
SEP 17 vs SEP 16
DIRECT INCOME DEPOSITS
+ 103,000
SEP 17 vs SEP 16
NET NEW CARDS
+ 168,000
SEP 17 vs SEP 16
+ 14.9%
SEP 17 vs SEP 16
+ 12.7%
SEP 17 vs SEP 16 SEP 17 vs SEP 16
+ 22.8%
POINT OF SALE terminals installed In-store Bankia cards Total turnover
11
Commercial positioning | Customer funds and new production
Mutual fund volumes continue to rise
QUARTERLY RESULTS PRESENTATION
STRICT CUSTOMER DEPOSITS + MUTUAL FUNDS + PENSION FUNDS
117.7
Strict deposits: 98.0
SEP 16
€bn
Mutual funds:13.3
Pension funds: 6.4
9M 2017 Highlights
117.3
Strict deposits:
95.6
SEP 17
Mutual funds: 15.1
Pension funds: 6.6
99.2% 100.1%LTD RATIO
80.9% 85.9%Retail deposits as a % of total deposits
Source: Inverco
5.60%Sep 16
+7 bps 5.67%Sep 17
Source: Inverco
7.46%Sep 16
+121 bps 8.67%Sep 17
9.21%Sep 16
+21 bps 9.42%Sep 17
NET NEW MUTUAL FUNDS MKT SHARE
MUTUAL FUNDS MKT SHARE
HOUSEHOLDS DEPOSITS MKT SHARE
Source: BoS..
12
Commercial positioning | Credit performance and new credit: mortgages
New mortgage lending continues at a good pace...
QUARTERLY RESULTS PRESENTATION
9M 2017 Highlights
NEW MORTGAGE LOANS
9M17
€mn
34% of applications come from new customers
350
543
440
1Q17 2Q17 3Q17
45% of new mortgages granted at fixed rates in 3Q17 vs 47% in 2Q17
65% Avg. Loan-to-value of new mortgages
YIELDS ON NEW MORTGAGE LOANS%
579
2.3x
1,333
9M16
1.28%
1.67%1.48%
1.63%
2016 1Q 17 2Q 17 3Q 17
13
Commercial positioning | Credit performance and new credit: consumer finance
... as is the case of consumer finance...
QUARTERLY RESULTS PRESENTATION
9M 2017 Highlights
NEW CONSUMER FINANCE LOANS
€mn
GROSS CREDIT STOCK | CONSUMER FINANCE
2.9 3.5
+18.3%
SEP 16 SEP 17
€bn
CONSUMER FINANCE MARKET SHARE – OUTSTANDING BALANCE
4.88%
Sep 17
4.78%
Sep 16
+10 bps
Source: BoS. * Lastestavailable data
CONSUMER FINANCE MARKET SHARE – NEW LENDING
5.91%
Aug 17*
5.60%
Aug 16
+31 bps9M17
404
438
403
1Q17 2Q17 3Q17
1,042
+19.6%
1,246
9M16
14
Commercial positioning | Credit performance and new credit: SMEs
... and in the businesses and SMEs segments
QUARTERLY RESULTS PRESENTATION
NEW LOANS PERFORMANCE - BUSINESSES
9M 2017 Highlights
CREDIT STOCK EX. NPL - BUSINESSES
€bn
29.429.7
29.5
€0.3bn+ 0.9%
SEP 16 JUN 17 SEP 17
New loans
+22.1% 9M17 vs 9M16
SMEs
New loans
+15.9% 9M17 vs 9M16
OTHER BUSINESSES
6.19%Jun 16
+23 bps 6.42%Jun 17*
BUSINESSES MKT. SHARE EXC. NPLS
5.42%Jun 16
+20 bps 5.62%Jun 17*
Source: BoS. * Latest availabledata.
BUSINESSES MKT. SHARE EXCL. NPLS AND EXCL. R.E. DEVELOPERS
BUSINESSES “OSR” MKT. SHARE
5.87%Sep 16
+14 bps 6.01%Sep 17
€mn
15
Profitability and efficiency | Value generation levers
QUARTERLY RESULTS PRESENTATION
9M 2017 Highlights
(2.5%)Gross income9M17 vs 9M16
Cost of risk24 bps 9M17 vs
24 bps 9M16
(1.8%)Operating expenses
9M17 vs 9M16
731
9M 17
+1.0%
739
9M 16
8.1%ROE 9M 17
Attributable profit up year-on-year, with a ROE of 8.1%
16
Asset quality | Key metrics
QUARTERLY RESULTS PRESENTATION
€mn
NPLs
10,194
SEP 17
(€1,282mn)
NPL RATIO
NET FORECLOSED ASSETS€mn
Reduction in volume of non-performing loans and foreclosed assets
11,476
DEC 16
8.8%
SEP 17
(1.0 pp)
9.8%
DEC 16
2,082
SEP 17
(€169mn)
2,251
DEC 16
9M 2017 Highlights
PROBLEMATIC ASSETS/OWN FUNDSWEIGHT (NET NPA + NET FORECLOSED ASSETS / OWN FUNDS)
53.7%
SEP 17
(6.5 pp)
60.2%
DEC 16
17
Capital generation | Capital levels
114 bps of CET1 capital generated in the first nine months of the year
QUARTERLY RESULTS PRESENTATION
TOTAL CAPITAL FULLY LOADED RATIO
Solvency ratios include the result attributable to the Group and exclude the regulatory adjustment for the estimated dividend.If unrealised gains on the AFS sovereign portfolio at 30 September 2017 had been included, the CET 1 Phase In ratio would have reached 16.13%, and Total Capital 19.07%. On a Fully Loaded basis, CET1 ratio would have reached 14.55%, and the Total Capital ratio, 17.58%.
13.02% 14.16%
+ 114 bps
DEC 16 SEP 17
CET 1 FULLY LOADED RATIO
9M 2017 Highlights
14.36% 17.18%
+ 282 bps
DEC 16 SEP 17
18
CONTENTS
9M 2017 HIGHLIGHTS1
3Q 2017 RESULTS2
ASSET QUALITY AND RISK MANAGEMENT3
4
CONCLUSIONS5
LIQUIDITY AND SOLVENCY
19
3Q 2017 Results
Income statement – Bankia Group
QUARTERLY RESULTS PRESENTATION
1Q17 2Q17 3Q17 % diff 3Q vs 2Q
9M16 9M17 % diff
Net interest income 504 491 472 (3.9%) 1,631 1,467 (10.1%)
Fees and commissions 207 218 210 (3.4%) 611 636 4.1%
Gains/(Losses) on financial assets and liabilities 161 101 51 (49.0%) 184 314 70.6%
Other revenue 14 (48) 17 -- 35 (17) --
Gross income 886 762 751 (1.5%) 2,460 2,398 (2.5%)
Operating expenses (386) (378) (387) 2.4% (1,172) (1,151) (1.8%)
Pre-provision profit 500 384 364 (5.3%) 1,288 1,247 (3.1%)
Provisions for credit (108) (73) (75) 2.3% (260) (256) (1.7%)
Provisions for foreclosed assets (39) (18) (21) 17.4% (61) (79) 29.1%
Taxes, minority interests and other items (49) (82) (42) (48.7%) (235) (174) (26%)
Profit attributable to Group 304 210 225 7.2% 731 739 1.0%
€mn
20
3Q 2017 Results
Net interest income
QUARTERLY RESULTS PRESENTATION
Impact of the bond portfolios and the Euribor curve shape net interest income performance
1,631
€mn
9M 179M 16
1,467
NET INTEREST INCOME PERFORMANCE
Bond Portfolios
(215)+ 138
(88)
Euribor Loan yield and funding cost
reduction
21
3Q 2017 Results
Net interest income
QUARTERLY RESULTS PRESENTATION
+1.41
Quarter affected by seasonality and a 12M Euribor curve still at historic lows
+1.49
Gross customers margin
+1.52
GROSS CUSTOMERS MARGIN
+1.59
Loan yield Cost of customer deposits
+1.53+1.55
Source: Implied yield curve at the reference date
12M EURIBOR PERFORMANCE
Average rate on new loans at 2.7%, remaining 110 bps above backbook
Backbook cost of deposits down to 0.19%,
and frontbook cost at 0.05%
1.811.61 1.65 1.64 1.68 1.61
0.26 0.20 0.16 0.12 0.09 0.08
2T 2016 3T 2016 4T 2016 1T 2017 2T 2017 3T 20173Q 20162Q 2016 3Q 20172Q 20174Q 2016 1Q 2017
-30
-20
-10
0
10
20
30
40
Jan
uary
-16
Mar
ch-1
6
May
-16
July
-16
Sept
embe
r-1
6
Nov
embe
r-1
6
Jan
uary
-17
Mar
ch-1
7
May
-17
July
-17
Sept
embe
r-1
7
Nov
embe
r-1
7
Jan
uary
-18
Mar
ch-1
8
May
-18
July
-18
Sept
embe
r-1
8
Nov
embe
r-1
8
Jan
uary
-19
Mar
ch-1
9
May
-19
July
-19
Sept
embe
r-1
9
Nov
embe
r-1
9
bps
Real October 16 October 17
22
3Q 2017 Results
Fees and commissions
Fees and commissions up 4.1% in first nine months of the year
Fee and commission income fuelled by new positioning
QUARTERLY RESULTS PRESENTATION
207
QUARTERLY PERFORMANCE
2Q 17
218
2Q 16 3Q 17
210
+2.9%
1Q 17
207
4Q 16
213
3Q 16
204200
1Q 16
DETAILED PERFORMANCE
611 636
+4.1% 9M16 9M17 Diff %
Assets under management 250 264 +5.5%
Means of payments 167 177 +5.9%
Origination 109 122 +12.6%
Mngmnt. of NPLs, writedons & others 101 94 (7.2%)
Maintenance 42 35 (15.6%)
Earned fee and commisions 669 693 +3.5%
Paid fee and commisions (58) (57) (2.3%)
NET FEE AND COMMISSIONS 611 636 +4.1%
NET FEE AND COMMISSIONS o/RWAs 1.16% 1.26% +0.1 pp
€mn €mn
23
3Q 2017 Results
Operating expenses
1,172
1.8% reduction in operating expenses in 9M 2017
OPERATING EXPENSES PERFORMANCE
9M 17
(1.8%)
QUARTERLY RESULTS PRESENTATION
1,151
9M 16
378
3Q 17
+0.3%
387
2Q 17
386
3Q 16
Efficiency ratio of 48.0% in 9M17
(1) Peers include BBVA Spain (including real estate division), Bankinter (ex Portugal), Caixabank (ex BPI), Liberbank, Sabadell (ex TSB) and Santander Spain (including real estate division)
OPERATING EXPENSES AS A % OF RWAS
%
PEERS LAST 12 MONTHS
JUN 16 – JUN 17
3.14% 2.08%
(96 bps)
BANKIA LAST 12 MONTHS
SEP 16 – SEP 17
€mn
24
3Q 2017 Results
Cost of risk
QUARTERLY RESULTS PRESENTATION
Cost of risk remains at 24 bps during the year
COST OF RISK PROVISIONS FOR CREDIT AND FORECLOSED ASSETS (FA)
24 24
bps
9M 2016 9M 2017
€mn
Credit
108
147
Credit
73
91
1Q 17 2Q 17
(34.7%)
FA39 FA
18
Credit
75
96
3Q 17
FA21
25
3Q 2017 Results
Attributable profit
Accumulated attributable profit up on same period of previous year
QUARTERLY RESULTS PRESENTATION
731
€ mn
ATTRIBUTABLE PROFIT PERFORMANCE
9M 17
+1.0%
739
9M 16
1.27% 1.35%210
3Q 17
+7.2%
225
2Q 17
250
3Q 16
RORWANET PROFIT AS A % OF RWAs%
9M 179M 16
26
CONTENTS
9M 2017 HIGHLIGHTS1
3Q 2017 RESULTS2
ASSET QUALITY AND RISK MANAGEMENT3
4
CONCLUSIONS5
LIQUIDITY AND SOLVENCY
27
Asset quality and risk management
Credit quality
€ mn
NPLs
NPLs down c.€1,300mn in first nine months of the year
10,19411,476
DEC 16 SEP 17
(€360mn)
QUARTERLY RESULTS PRESENTATION
NPL RATIO
10,554
JUN 17
%
8.8%9.8%
DEC 16 SEP 17
(0.3 pp)
9.1%
JUN 17
(€1,282mn) (1.0 pp)
28
Asset quality and risk management
Credit quality
NET FORECLOSED ASSETS
Stock of net foreclosed assets continues to decrease
QUARTERLY RESULTS PRESENTATION
2,0822,251
DEC 16 SEP 17
2,146
JUN 17
(€170mn)Net amounts. €mn
(€64mn)
€mn
NON-PERFORMING ASSETS
13,34414,925
DEC 16 SEP 17
(€469mn)
13,813
JUN 17
NON-PERFORMING LOANS + GROSS FORECLOSED ASSETS
(€1,581mn)
14.6% units sold in 9M 17 as % of total stock at the start of the year
(10.6%)
29
Asset quality and risk management
Credit quality
Stable coverage levels with respect to the previous quarter
QUARTERLY RESULTS PRESENTATION
FORECLOSED ASSETS COVERAGE
Bankia Sep 17
34%
Peers Jun 17 (1)
34%
Bankia Sep 17
61%
Peers Jun 17 (1)
56%
Bankia Sep 17
53%
Peers Jun 17 (1)
51%~ 92%
NPLs MIX AND COVERAGE
NPLs COVERAGE EX R.E. DEVELOPER
Bankia Sep 17
77%
Peers Jun 17 (1)
63%
R.E. DEVELOPER NPLs COVERAGE
BANKIA SEP 17
PEERS JUN 17
BANKIA TOTAL NPL COVERAGE: 53.8%
% NPLs EX R.E. DEVELOPERS /
NPL
% R.E. DEVELOPERS NPLs
/ NPLs
~ 68%
~8% ~32%
(1) Peers include BBVA Spain (including RE division), Caixabank (ex BPI), Sabadell (ex TSB) and Santander Spain (including RE division and Banco Popular)
COVERAGE SINCE FORECLOSURE COVERAGE SINCE LOAN ORIGINATION
Weight o/ total Coverage
Bankia Peers (1) Bankia Peers (1)
Finished homes 74% 53% 61% 46%
Land 2% 29% 78% 69%
Other foreclosed assets 24% 19% 58% 51%
Bankia data as of Sep 17 / Sector data as of Jun 17
30
CONTENTS
9M 2017 HIGHLIGHTS1
3Q 2017 RESULTS2
ASSET QUALITY AND RISK MANAGEMENT3
LIQUIDITY AND SOLVENCY4
CONCLUSIONS5
31
61%
8%
12%
10%
5%4%
Funding structure and liquidity
QUARTERLY RESULTS PRESENTATION
FUNDING STRUCTURE AND MATURITIES PROFILE
Stable funding structure, with greater weight of retail deposits
Liquidity
Customer deposits
Wholesale debt
Deposits Credit Institutions
TLTRO
Clearing houses and repos
Other
FUNDING STRUCTURESEP 17
WHOLESALE DEBTSEP 17
11%
8%
81%
Deuda subordinada
Deuda senior
Cédulas hipotecarias
Subordinated debt (1)
Senior debt
Covered Bonds
WHOLESALE MATURITIESSEP 17
4Q17 2018 2019 2020 >2020
Covered Bonds 160 2,436 1,742 127 12,658
Senior debt 438 251 983 106
Subordinated debt (1) 1,000 1,250
TOTAL MATURITIES 598 2,687 3,725 127 14,014
ECB exposure(100% TLTRO)
€12.8bn
LCR
160%
LTD ratio
100.1%
(1) Subordinated debt includes Tier 1 and Tier 2 issuances
Data as of Sep 17
32
Capital ratios
QUARTERLY RESULTS PRESENTATION
PHASE IN RATIO
34 bps of capital generation (CET1 FL) in last quarter
JUN 17
18.75%
SEP 17
+45 bps
Solvency
%
CET1
15.36%
CET1
15.81%
AT1:0.94%
T2:2.00%
17.39%
T2:2.03%
+136 bpsTotal Capital
CET1
FULLY LOADED RATIO
JUN 17
17.18%
SEP 17
+34 bps
%
CET1
13.82%
CET1
14.16%
AT1:1.02%
T2:2.00%
15.85%
T2:2.03%
+133 bpsTotal Capital
CET1
Solvency ratios include the result attributable to the Group and exclude the regulatory adjustment for the estimated dividend.If unrealised gains on the AFS sovereign portfolio at 30 September 2017 had been included, the CET 1 Phase In ratio would have reached 16.13%, and Total Capital 19.07%. On a Fully Loaded basis, CET1 ratio would have reached 14.55%, and the Total Capital ratio, 17.58%.The leverage ratio including the unrealised gains on the AFS sovereign portfolio at 30 September 2017 would reach 6.99% Phased-in and 6.42% Fully Loaded.
5.78% 6,26%Leverage RatioLeverage Ratio 6.38% 6.86%
SREP requirements
2017
CET 1: 7.875%
BUFFER: 7.94%
TC: 11.375%
BUFFER: 7.38%
CET1 Total Capital
33
CONTENTS
9M 2017 HIGHLIGHTS1
3Q 2017 RESULTS2
ASSET QUALITY AND RISK MANAGEMENT3
4
CONCLUSIONS5
LIQUIDITY AND SOLVENCY
34
Conclusions
QUARTERLY RESULTS PRESENTATION
More customers and more satisfied translates into a good performance of new production and business market shares
We continue making progress in adapting our distribution model to our customers’ needs
NPLs continue to decrease (-1.0 pp during 2017), with stable coverage ratios and with a cost of risk of 24 bps
Recurrent profitability of the business (ROE of 8.1% in the year) allows to continue generating capital organically and drives up CET1 Fully Loaded ratio to 14.16%
Commercial positioning Multichannel
Asset quality Profitability and solvency